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The Group of Companies Doctrine - Bone of Contention


The power conferred by Section 7 of the Arbitration & Conciliation Act 1996 ("the Act") is the primary element motivating parties to choose arbitration. Section 7 of the Act is based on the mutual consent of parties with a legal connection to refer to arbitration. Courts have construed Section 7 over time based on the interests of the parties, the circumstances, and the theories. The Group of Companies Doctrine ("the Doctrine") favours the concept of ‘single economic reality' over the doctrine of corporate personhood. It implies that the group entities have common transactions and intentions in arbitral proceedings, regardless of whether they are signatories to the Arbitration Agreement.


* The author is a fifth-year student pursuing B.A. LL.B.(Hons.) from ICFAI Law School, IFHE, Hyderabad.

The Group of Companies Doctrine - Bone of Contention-NLR
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1 Comment

SnR Law
SnR Law
Aug 25, 2023

It's essential to have resources that simplify complex legal concepts, and this one seems to have done a great job. Thanks for sharing. -

Journal Details
Abbreviation: NLR 

ISSN:   2582-8479 (O)

Year of Starting: 2020

Place: New Delhi, India

Accessibility: Open Access

Peer Reviewer: Double Blind



​All research articles published in NLR and are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution, and reproduction in any medium provided the original work is properly cited.

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